Tata Motors (TTMT IN, BUY, TP: INR520) is reportedly in talks | DM Stocks

Tata Motors (TTMT IN, BUY, TP: INR520) is reportedly in talks with global investors to raise USD500-USD600m for its India EV business. According to the Economic Times, the company is seeking a 15-20% premium from its last funding round, valuing its EV subsidiary, Tata Passenger Electric Mobility at cUSD10.9b. This follows a USD1b funding round in 2021 with TPG's Rise Climate Fund and Abu Dhabi's ADQ. As per the article, Tata is currently in preliminary discussions with several high-profile investors, impact funds, sovereign wealth funds, and Canadian pension funds for the funding.

If true, this is positive for the company and helps increase the confidence on valuations for TTMT's India EV business. EV stocks have corrected significantly over the last year and if TTMT could receive funding at a higher valuation versus its previous fund raise, it could provide strength to the stock in the short term.

Himanshu Singh, Mansi Lall
PL Autos

https://economictimes.indiatimes.com/epaper/delhicapital/2023/jan/20/et-front/tata-motors-back-on-funding-st-seeks-around-600m-for-ev-biz/articleshow/97151573.cms